Main Options For Dispute Resolution In Dubai

Amicable Settlement Centre (ASC)

Any property attorney would recommend that filing a claim with the Courts should be the last resort when solving real estate disputes. Simply because there is so much money and time involved. One efficient option is to refer the dispute to the ASC at the Dubai Land Department (DLD), managed by a legal team. Mediators at the ASC have access to DLD databases. Thus, they can quickly obtain information about projects, properties, developers, and other real estate facts. They are very experienced and do not charge fees to the parties. Rather than impose a judgment, the ASC seeks to mediate until an amicable settlement is reached. Once resolved, the signed agreement becomes binding and enforceable.

 

Rent Disputes Settlement Centre (RDSC)

The RDSC holds exclusive jurisdiction over Dubai tenancy disputes about the leasing of immovable assets. They have a mediation department that aims to resolve disputes between tenants and landlords before referring the case to Court. The RDSC charges around AED 15,000 to AED 35,000 for filing a lawsuit, depending on the claim's nature. The litigation process is quite fast, wherein a judgment can be obtained between 2 to 3 months. However, the RDSC does not have jurisdiction over leases exceeding 10 years (long-term leases) and lease-to-own contracts. The RDSC also doesn't have jurisdiction over tenancy disputes in free zones because of a judicial committee within the Dubai International Financial Centre (DIFC).

 

Judicial Committee for Liquidation of stalled projects (JCL)

For disputes involving stalled projects, legal consultants in Dubai refer to the JCL. The agency was formed according to Decree No 21 of 2013 to liquidate stalled projects. Investors can lodge their claims via the JCL's designated website. The agency has not specified rules or procedures regarding the liquidation process, but it is known that there are complexities involved in such projects. The JCL has a wide authority, and any decision they make is final.

 

DLD Legal Affairs Department (DLD Legal)

Disputes that involve the termination of sale and purchase agreement can be resolved through the DLD Legal. Dubai Law No. 19 of 2017 grants developers the right to terminate a defaulting purchaser's sale and purchase agreement upon satisfying specific conditions. The termination process takes around 3 to 4 months and can be completed via DLD Legal’s online system. They charge a service fee of AED 3,000. DLD Legal also has the authority to mediate an amicable settlement between the defaulting purchaser and developer.

 

Dubai Property Court

If involved parties don't reach an amicable settlement, that's when they can take it to Court with a real estate lawyer. The Court has jurisdiction over all property disputes, except those excluded according to other decrees or laws. It has 3 levels, including First Instance, Court of Appeal, and Court of Cassation. Obtaining an enforceable judgment can take up to 2 years or more if necessary, to appeal to all levels. Fees for filing a case before the Court of First Instance can reach up to AED 40,000 or more if the dispute involves multiple contracts. Also, all documents submitted should be in Arabic or translated to Arabic.

 

When it comes to property disputes, you need a legal expert to help you navigate the negotiations and provide insightful advice. Make the right choice and talk to the lawyers of Motei & Associates. They have vast local knowledge and continued awareness of the real estate market in the UAE. Book an appointment today at +971 4 435 5959!